Welfare costs of sticky wages when effort can respond

Mark Bils, Yongsung Chang

Research output: Contribution to journalArticlepeer-review

3 Citations (Scopus)

Abstract

We examine the impact of wage stickiness when employment has an effort as well as hours dimension. Despite wages being predetermined, the labor market clears through the effort margin. Consequently, welfare costs of wage stickiness are potentially much, much smaller.

Original languageEnglish
Pages (from-to)311-330
Number of pages20
JournalJournal of Monetary Economics
Volume50
Issue number2
DOIs
Publication statusPublished - 2003 Mar

All Science Journal Classification (ASJC) codes

  • Finance
  • Economics and Econometrics

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